Siemens and Gamesa Close to Announcing Wind Ops Tie-Up

By Eyk Henning

FRANKFURT–Siemens AG and Gamesa Corporacion Tecnologica SA are close to announcing an anticipated deal to combine their wind-power activities and create the world’s largest wind turbine maker, according to people familiar with the matter.

A deal, which could be announced as early as this week according to the people, would end months of the uncertainty around the transaction. As always in these deals, an announcement could be delayed.

Siemens and Gamesa in February agreed in principle to combine their wind activities, but the tie-up hit a snag because Gamesa needed to renegotiate elements of an offshore wind joint venture, dubbed Adwen, with French nuclear engineering firm Areva SA.

Those issues have been resolved in principle, the people said.

The deal structure that is to be revealed as early as Wednesday foresees Siemens transferring its offshore wind activities into the Spanish company in exchange for a roughly 60% stake in the enlarged business, people familiar with the matter said, adding the combination could help realize annual synergies of around EUR200 million ($224.13 million).

The expanded entity would likely have a market capitalization of roughly EUR10 billion, remain listed on the Madrid Stock Exchange and be led by Gamesa’s Chairman Ignacio Martin, the people said.

The transaction still needs to be approved by Gamesa’s shareholders, who will get to vote on the transaction. Both Siemens and Gamesa declined to comment. Chris Alessi and Jeannette Neumann contributed to this article.

Write to Eyk Henning at eyk.henning@wsj.com

Breaking the story

Eyk Henning was first to report Siemens is close to announcing a deal with Gamesa Corporacion Tecnologica to combine their wind-power activities. Siemens will likely transfer its offshore wind operations into the Spanish company in exchange for a roughly 60% stake in the combined business, according to sources.

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